Gold Keeps Sinking on Bernanke Remarks

The U.S. dollar climbed while equities and commodities fell

Gold joined equities and other commodities in a broad and sharp selloff on Thursday, falling below $1,300 an ounce. Global markets continued to sink on the heels of yesterday’s comments by Federal Reserve Chairman Ben Bernanke signaling that the Fed could begin slowing its monthly bond-buying later this year.

While Bernanke’s remarks suggested confidence in the strength of the U.S. economy, equities markets continued their downward spin for a second day. The U.S. dollar, by contrast, surged against other world currencies.

Gold futures for July delivery plummeted 6.4% to $1,285.90 per ounce on Thursday, according to CME Group. Gold traded as high as $1,349.80 and as low as $1,280.80. Gold bullion closed in London at $1,281, according to BullionVault.

Silver futures for July delivery plunged 8.3% to $19.82 per ounce. Thursday’s high for silver was $21.28 while the low was $19.64.